JEFO 23-0346 Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MD 20670-1547

IN REPLY REFER TO

JEFO Number: 23-0346

JUSTIFICATION FOR AN

EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

2. Nature and/or Description of Action being Approved.

Pursuant to FAR 16.505(b)(2)(i)(C), this Justification for an Exception to Fair Opportunity (JEFO) authorizes and approves the award of an order modification as a logical follow-on to existing Order

N0001923F0266 under Indefinite Delivery Indefinite Quantity (IDIQ) Contract N0001918D0110 awarded to Standard Aero on 22 February 2023 for an engine induction and minor repair as well as Option Items for a fan and booster refurbishment, a High Pressure Compressor (HPC) rotor module refurbishment, a

HPC stator module refurbishment, eight (8) SermeTel coating incorporations, and seven (7) additional engine inductions. This JEFO authorizes a Low Pressure Turbine (LPT) module refurbishment on P-8A engine with Engine Serial Number (ESN) [REDACTED], minor repair on ESNs [REDACTED], and the incorporation of Service Bulletins (SBs) (which are classified as Technical Directives (TDs)) required to correct known engine component reliability issues to ESNs [REDACTED] to ensure the engines are returned in Ready-For-Issue (RFI) status.

3. Description of the Supplies or Services Required to Meet the Agency’s Needs (including the estimated value).

The Maritime Patrol and Reconnaissance Aircraft program office (PMA-290) requires the completion of

LPT Module Refurbishment on ESN [REDACTED], the completion of minor repair on ESNs

[REDACTED], and the incorporation of TDs to bring ESNs [REDACTED] into the latest approved configuration. The estimated total value of the supplies and services is approximately [REDACTED].

4. Identification of the Justification Rationale (see FAR 16.505(b)(2)) and, if applicable, a

Demonstration of the Proposed Contractor's Unique Qualifications to Provide the Required Supply or Service.

Pursuant to FAR 16.505 (b)(2)(i)(C), the order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

As a result of competitive Solicitation N00019-15-R-2004, on 1 February 2018 Standard Aero was one of two awardees for P-8A Poseidon engine repair IDIQ contracts. Pursuant to each contract’s clause H-1

AIRFRAME AND ENGINE IDIQ CONTRACT FAIR OPPORTUNITY ORDERING PROCEDURES, the

Government conducted a competition between the two engine depot IDIQ contractors for Option Period 5 resulting in the selection of Standard Aero as the primary awardee and issuance of Order N0001923F0266 to Standard Aero. The order procured the induction and Minor Repair of one (1) P-8A engine and established Option Items to induct seven (7) additional engines.

To date, four (4) engines have been inducted under this Order including ESN [REDACTED], which was inducted on 9 August 2023. ESN [REDACTED] was inducted at Standard Aero’s facility on 21 July 2023 under Engine SermeTel Coating Order N0001923F2611; however, due to that engine requiring services outside the scope of that order but inside the scope of this Order N0001923F0266, upon execution of the modification associated with this JEFO, it will be inducted under this Order. ESNs [REDACTED] arrived at Standard Aero’s facility on 28 August 2023 and will be inducted upon execution of the modification associated with this JEFO. The induction of ESNs [REDACTED] will fill seven (7) of the eight (8) engine induction CLIN/Options of this Order.

On 21 August 2023 Standard Aero delivered an Engine MRO Assessment Report for ESN [REDACTED] recommending, among other things, the LPT module refurbishment and incorporation of a TD.

For ESNs [REDACTED], based on the fact that all engines inducted under previous orders required minor repair, each will require minor repair. Additionally, the P-8A Power and Propulsion IPT has identified specific TDs to be incorporated into each engine.

To fulfill the requirements associated with this JEFO, an order modification must be issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to the order, as the affected engines are either at the Contractor’s facility pending induction or are already inducted for depot level maintenance and repair.

5. A Determination by the Contracting Officer that the Anticipated Cost to the Government will be

Fair and Reasonable.

A portion of the effort falls under the cognizance Firm-Fixed Price (FFP) CLINs of the IDIQ Contract.

The planned modification’s FFP unit prices are in accordance with the corresponding IDIQ Contract

CLINs’ unit prices, which were established under adequate competition. Another portion of the effort falls under the cognizance of Time-and-Materials (T&M) CLINs of the IDIQ Contract. The planned modification’s T&M rates are in accordance with the corresponding IDIQ Contract CLINs’ T&M rates, which were established under adequate competition. Ultimately under each T&M CLIN the contractor will be paid for actual labor hours applied multiplied by that CLINs’ labor hour rate along with actual

Materials costs incurred. Based on the information provided and the prices previously established under adequate competition, the Contracting Officer anticipates the costs to the Government will be fair and reasonable.

6. Any other Facts Supporting the Justification.

Setting aside schedule impacts, the additional tasking described in Section 3 performed by the other contractor would create duplicative costs to the Government estimated at [REDACTED]. The duplicative costs are associated with the current contractor preparing and shipping each engine to the other contractor’s facility, and the other contractor inducting each engine and performing inspections, inventory, and partial dismantling to access and assess each engine core. Additional impacts to the Government if the Section 3 tasking were performed by the other contractor would require DCMA at both contractors’ facilities surveilling the efforts. Authorizing the fulfillment of the requirements associated with this JEFO concurrently with the engine inductions ensures Navy aircraft and aircrew safety and improves readiness, reduces cost, and helps meet schedule requirements.

7. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any

Barriers that Led to the Exception to Fair Opportunity before any Subsequent Acquisition for the

Supplies or Services is Made.

The two IDIQ contracts include a base period and six option periods. Each option period is subject to competition between the two IDIQ contractors which includes obtaining competitive FFP unit prices and

T&M rates to fulfill requirements such as those described within this JEFO.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

[REDACTED]

Signature Name (Printed) Phone No.

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of FAR 16.505(b)(2)(i)(C).